Banking Regulation Act, 1949 · Section guide
Section 47A: Power of Reserve Bank to impose penalty
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 47A — Power of Reserve Bank to impose penalty. Allows RBI to impose monetary penalties for section 46(2)/(3)/(4) contraventions: up to ₹20 lakh. Per section 46(2) offence plus up to ₹50,000 per continuing day; up to twice affected deposits for section 46(3); and for section 46(4), up. to ₹1 crore or twice the quantifiable amount, whichever is more, plus up to ₹1 lakh per continuing day. RBI must issue show-cause notice. And give reasonable hearing; payment is due within 14 days of demand and unpaid sums can be recovered through the principal civil court route; parallel complaint/penalty bars operate as specified.
Official statute linkedProvision-specific anatomyPractical case + evidence file
Statutory structure and provision map
This map is a provision-specific explanation, not a substitute for the exact statutory text.
Core statutory rule
Allows RBI to impose monetary penalties for section 46(2)/(3)/(4) contraventions: up to ₹20 lakh per section 46(2) offence plus up to ₹50,000 per continuing day.
Condition / limitation
up to twice affected deposits for section 46(3).
Timing / amount / process
and for section 46(4), up to ₹1 crore or twice the quantifiable amount, whichever is more, plus up to ₹1 lakh per continuing day. RBI must issue show-cause notice and give reasonable hearing.
Consequence / linked control
payment is due within 14 days of demand and unpaid sums can be recovered through the principal civil court route.
Working flow
Identify the bank/entity class, event date and the factual trigger for Power of Reserve Bank to impose penalty.
Apply the core Section 47A rule: Allows RBI to impose monetary penalties for section 46(2)/(3)/(4) contraventions: up to ₹20 lakh per section 46(2) offence plus up to ₹50,000 per continuing day.
Test the next condition or limitation: up to twice affected deposits for section 46(3).
Reconcile any amount, period, approval, filing or return mentioned in Section 47A with the supporting record.
Record the conclusion, official source used, effective date and evidence that proves the statutory condition was met or not met.
Evidence / working-paper checklist
- Section 47A evidence: the exact contravention and enabling provision.
- Section 47A evidence: show-cause/complaint and service evidence.
- Section 47A evidence: hearing submissions and adjudication/order.
- Section 47A evidence: payment/recovery/court record and continuing-default calculation.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 47A, avoid calculating a penalty without first classifying the statutory contravention.
- For Section 47A, avoid missing the hearing/payment/recovery sequence.
- For Section 47A, avoid assuming a regulatory monetary penalty and a criminal complaint can always proceed in parallel.
Related sections inside the Act
Use these links to read Section 47A in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: Section 47A is anchored to the official DFS consolidated text; later changes require separate Gazette verification.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 47A on the event date.
Primary official sources
Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.